Arizona Highway Commission Notes

June 12, 1935 The Arizona State Highway Commission met in special session in their offices in the Highway Building at 2:00 P. M., June 12, 1935. Those present were Chairman Dowell, Vice-Chairman Angle, Commissioners Darth, Addams and Seale also, the State Engineer and Assistant Attorney General Murphy.

State Engineer O'Connell recommended subject to the approval of the Bureau of Public Roads that the contract on the Safford-Bowie Junction Highway, N.R.S. Project No. 115-A (1935) A.F. E. 8103, be awarded to the low bidder, Ken Hodgman, in the amount of $54,-118.71. It was regularly moved by Commissioner Addams, seconded by Commissioners Angle and Barth, and unanimously carried, that the recommendation of the State Engineer be accepted.

Awarding of the contract on the Tucson-Florence Highway, U. S. Public Works Project No. N.R.M. 9 (A.F.E. No. 528), on which bids were opened April 19, 1934, but were not awarded due to the serving of injunction proceedings against the Commission.

The Secretary read a letter dated June 7, 1935, from W. E. Hall Company, the low bidder on this project, stating he was withdrawing his bid on the Stone Avenue, Tucson, Underpass, N.R.M. 9-A, filed with the Department in April, 1934; that due to the changes in general material prices and conditions he found it impossible to carry through this commitment of over a year ago.

Mr. Hall appeared in person before the Commission and stated that had the injunction been dissolved several months ago, he would have been willing to go through with the job, but his Company now has a similar type of project on 17th Avenue in Phoenix, and, for that reason, and due to the general change of price conditions, he was withdrawing his bid.

Attorney Murphy advised the Commission that Mr. Hall is within his rights in withdrawing the bid and State Engineer O'Connell advised the Commission that it would be necessary to re-advertise this project, inasmuch as the Bureau of Public Roads had notified him they would not accept the second low bid, because of the fact Mr. Hall had not defaulted in any way but was acting within his rights in withdrawing his bid and, therefore, would not forfeit his bond.

Commissioner Angle read a wire presented from Jay J. Garfield Building Company, the second low bidder, stating that in the event W. E. Hall withdrew his bid on this project, they would like to be given an opportunity to accept the contract at the price bid and that they were ready to furnish bond and start work immediately. Upon reading the wire, Commissioner Angle stated that if the Bureau of Public Roads would concur in the awarding of this contract to the Jay J. Garfield Building Company, the second low bidder, it would materially aid the unemployed of Tucson and assist in getting the underpass, which is badly needed, under way and thereby save any further litigation there might be.

On the advice of Attorney Murphy, it was regularly moved by Commissioner Seale, seconded by Commissioner Angle, and unanimously carried, that the two remaining bids; namely those of Jay J. Garfield and Geo. W. Orr, be rejected.

It was regularly moved by Commissioner Addams, seconded by Commissioner Angle, and unanimously carried, that the State Engineer be instructed to use all possible speed in readvertising this project, in order that it may be awarded as soon as possible.

Mr. Monte Mansfield, former member of the Highway Commission, thanked the Commission for their action and respectfully asked if the Commission would instruct the State Engineer to call a special meeting of the Commission to award this contract as soon as possible after the opening of the bids. In connection with Mr. Mansfield's request, it was regularly moved by Commissioner Addams, seconded by Commissioner Angle, and unanimously carried, that the State Engineer be instructed to call a meeting of the Highway Commission on the day of the opening of the bids on the Tucson Underpass, N.R.M. 9-A.

Each Commissioner was furnished with copies of letters received by State Engineer O'Connell with reference to probable regulations for the expenditure of the 1936 Public Works money. At the request of Chairman Dowell, State Engineer O'Connell briefly outlined the effect of the new regulations. He stated that 90 per cent of the personnel shall be taken off the relief rolls and that partial progress may be prepared immediately, which is serious but not half as serious as the regulation which states that projects will be measured on the rate of $1400 per man per year for total expenditure of labor, materials and incidentals, and projects to be selected where relief labor may be used.

State Engineer O'Connell went on to advise that the Estimating Department is working up last year's projects and they find that it costs between $2,600 and $3,000 per year per man on the type of construction that is being done now and the average will be around $3,000 per man per year. Also that, roughly speaking, the average hourly rate is .67%½ cents per hour per man; that with a man working 130 hours per month at the rate of 67½ cents per hour, it means every man gets $87.05 per month for 12 months, which means the payroll will be $1,053.00, leaving only $347.00 for materials and incidentals. In other words, it will take 75% of the $1400 for wages. The average job now is about 35% or less direct for labor. He pointed out that out of $1400 per man per year, figuring $1053 for labor and $347 for incidentals and equipment, there can be nothing undertaken but CWA Projects in the West.

State Engineer O'Connell submitted a copy of a wire from Mr. R. H. Baldock, Secretary of the American Association of State Highway Officials, asking him to send in a protest of this distribution of Public Works money to Senator Carl Hayden, which he advised he had done.

Commissioner Addams suggested that the Western States get together in a body and protest to those laying out the program in Washington and try to get an exception for the Western States in carrying out the instructions of the Federal Government in spending the Public Works money; and further, that inasmuch as the Highway Commission is in session, that they protest in their own name. He suggested that State Engineer O'Connell endeavor to get the Western States together in one body, formulate a plan and send a representative to Washington to work out matters satisfactorily to the Western States. Other members of the Commission expressed the belief that a vigorous protest should be sent to Washington without delay.

State Engineer O'Connell presented a wire received from Mr. C. H. Sweetser of San Francisco stating that a wire from Mr. Thomas H. MacDonald advised that all contracts entered into from May 27th to date, June 12, 1935, would be accepted but that circular letter No. 100, issued by Director of Procurement as of June 7th, provides that until proposed legislation is acted upon by Congress all invitations for supplies and construction work must contain the following clause: "Bids are requested on the basis that if subsequent legislation shall require observance of minimum wages and/or maximum hours of employment and/or limitation as to age of employees, in the performance of government contracts any contract entered into shall be subject to modification to accord with such statutory requirements to the extent authorized or required by law."

Mr. Sweetser's message also stated that contracts must be entered into accordingly and in all pending awards, the contractors should be requested to agree to the inclusion of the above stipulation, otherwise, supplies or work have to be readvertised to include such stipulation. Further, that this applies to all federal aid as well as Government work and includes contracts for materials as well as contracts for construction.

Chairman Dowell stated it appeared to him that this is the proper time for the Arizona Highway Commission to take some very vigorous action protesting both direct to Washington and to the Western Association of State Highway Officials. Commissioner Addams made a motion that the Highway Commission protest to Mr. H. A. Hopkins and also to our Congressional Representative in Washington, forwarding a copy of the protest to the Officials of the other 10 Western States. There was